What is a hotspot, and how does it work?

A hotspot is a place where you can get online wirelessly. More specifically, it’s where you can log on to a public or private network that provides internet access to your device. Hotspots bring internet to places beyond the home, office, school, or public library.

High-speed internet providers provide hotspots to serve their customers and others when they’re out in public spaces. Private or public organizations like a coffee shop or a parks department might also set them up. Individuals can also create their own hotspots from mobile phones, laptops, stand-alone devices, or even automotive infotainment systems.

In this piece, we’ll give you the scoop on hotspots by answering these questions:

• What is an internet hotspot?

• How does a hotspot work?

• What are the different types?

• What are the pros and cons?

• How do hotspots compare to traditional Wi-Fi?

• How do you choose the right hotspot?

Read on and get ready to take your internet connection wherever you need to go.

What is a hotspot?

Let’s start by defining hotspot:

• Hotspot (noun): A physical location or a device that provides wireless internet access to nearby devices, typically through a Wi-Fi connection.

A hotspot is just as much the device broadcasting the connection as it is the connection itself. Hotspot can also be a verb — an action word — in the sense that you can hotspot your smartphone’s mobile data connection out to your friends’ or family’s devices.

Hotspots can be created by stand-alone devices or special equipment within smartphones, laptops, cars, or the infrastructure of buildings. They rely on a cellular network (4G or 5G) or a wired internet connection (e.g., cable, fiber, DSL) to distribute internet service.

A hotspot can also be a small battery-powered device with its own cellular internet connection. These are often used by on-the-go digital nomads or field workers, who might need to connect the devices of a whole team.

How do hotspots work?

Hotspots work by taking an internet connection and turning it into a wireless signal that nearby devices can connect to. These connections typically rely on either a cellular network (like 4G or 5G) or a wired internet connection (such as cable, fiber, or DSL) to receive and distribute internet access. You’ll pay a monthly subscription for the internet service you use to create a hotspot, as well as for a device (owned or rented).

Here’s how it works:

• A hotspot device — whether it’s your phone, a stand-alone mobile hotspot, or a router — taps into a data source like a cellular network or a business’s internet connection.

• It then broadcasts a specific Wi-Fi signal network, which allows other devices like laptops, tablets, or gaming consoles to connect wirelessly.

• Once connected, these devices can browse the web, stream content, or download files like on a traditional Wi-Fi network.

Unlike your home’s Wi-Fi router, which is connected to a permanent wired internet source, hotspots are typically portable and use cellular data to provide internet access on the go.

In public or shared settings, hotspots can serve dozens of users simultaneously, though their performance may vary depending on the number of connected devices and the strength of the source network.

What are the different types of hotspots?

Hotspots come in two main types: mobile and public. Let’s cover some of the specifics below.

Mobile Hotspots

Put simply, mobile hotspots are devices that provide internet connection on the go. They could be inside of a smartphone or standalone devices that fit in the palm of your hand.

These portable devices connect to 4G and 5G cellular data networks to create a Wi-Fi signal for your laptop, tablet, or other internet-enabled device to connect to. Mobile hotspots are ideal for staying connected on the go, making them good choices for travelers, remote workers, and anyone needing internet access outside of a fixed location.

Public Hotspots

Public hotspots are non-portable Wi-Fi streaming devices installed at places like parks, cafes, libraries, businesses, and transportation hub. Businesses and organizations set up public hotspots to offer internet access to their customers or visitors. Public hotspots are convenient but often less secure since they’re open to anyone nearby. They can also get congested quickly, especially during working hours.

Advantages of Using Hotspots

The top benefit of hotspots is their ability to provide internet connection to more people in more places.

With mobile hotspots, you can take your connectivity anywhere you go. As long as you can catch a cellular data signal, you can hop online to work, play, socialize, or stream your favorite content.

You can also share your connection with others. Friends can connect their phones, coworkers can add their laptops, and you can even connect tablets, gaming devices, and any other connected gadget.

In many cases, mobile hotspots provide a stronger, more reliable connection than shared public networks, especially in areas where public Wi-Fi might be slow or congested. Plus, if you’re in a location without traditional wired connections, such as a remote worksite or on the road, your hotspot keeps you connected when you need it most.

Hotspots also give you control over your connection. You can set up a secure, password-protected network, which is especially useful compared to open public Wi-Fi, where security risks are higher. Whether you’re working remotely, streaming videos, or staying connected while traveling, a mobile hotspot ensures you have reliable internet access wherever you go.

For home use, hotspots can be a great backup solution if your primary internet connection goes down, making them a versatile tool for staying online in almost any situation.

Disadvantages of Using Hotspots

The convenience of a mobile hotspot can come with some drawbacks, however. As you can expect, cost, stability, security, and usage limitations can cause issues if you’re not smart about choosing your plan, provider, and device.

First, consider coverage range. Some hotspots can throw signal within 30 feet or so, and that might be plenty for certain users. Unlike home Wi-Fi routers, which typically cover an entire house, mobile hotspots are meant for a tighter radius.

Data caps can also be a concern. Just like a smartphone’s data plan, carriers will put limits on how much data you can download in a certain period. Heavy activities like streaming HD video, online gaming, or large file downloads can quickly eat up your data allowance, leaving you with slower speeds or extra charges.

If you depend on a hotspot as your primary internet connection, keeping track of your data usage is critical to avoid surprises. While unlimited plans are becoming more common, they can still have hidden throttling limits.

Internet security can also be at risk, especially with public or shared hotspots. Public hotspots, such as those in cafes or airports, often lack encryption, making them vulnerable to cyberattacks like data interception or malware infections.

Another aspect to consider on a mobile hotspot is battery life. When the battery dies, your connection is gone. You’ll need some way to charge your hotspot and the devices that use its connection.

Can it keep up?

Speed, latency, and bandwidth of a mobile or public hotspot won’t be as good as a standard connection, typically. It all depends on the underlying connection type. Mobile hotspots need cellular data, which max out at 5G speeds or up to 1 Gbps. That’s the best-case scenario and you might more consistently experience 4G speeds of around 40 Mbps — much slower, but still enough for most daily tasks.

Public hotspots might be faster if they’re tapped into fiber optic internet infrastructure, which hits speeds of 1-2 Gbps and above. However, with the number of users logged on at once, that bandwidth might get hogged quickly.

Hotspots vs. Traditional Wi-Fi

Alt text: Man sits in his travel van while working on a laptop connected to a hotspot

Compared to standard home Wi-Fi setups, mobile hotspots often trade speed and reliability for convenience.

In terms of performance, traditional Wi-Fi tends to offer more stable and faster connections. Since it’s anchored to high-speed wired networks, you can expect lower latency, higher bandwidth, and fewer interruptions, making it ideal for data-heavy activities like 4K streaming, online gaming, or video conferencing.

Traditional Wi-Fi is ideal for a permanent, far-reaching, high-speed connection that multiple devices can rely on without worrying about range or data limits.

Hotspots, while convenient, are often limited by the strength of the cellular network. Speeds can fluctuate based on signal strength, network congestion, and your location, meaning it’s not always as fast or reliable as home Wi-Fi.

However, if you’re constantly traveling for work, pleasure, or life in general, hotspots are your friends. With a mobile hotspot, as long as there’s a cell signal, you can connect to the internet. You can also take advantage of public hotspots in spaces you might stop to eat, work, or take transportation.

The key advantage of hotspots is mobility — they offer internet access in flexible, temporary settings like travel, outdoor work, or remote locations.

Tips for Choosing the Right Hotspot

The most important part of choosing a hotspot is choosing a strong and reliable network to back it up.

After finding the most reliable carrier or ISP, you need to consider your data usage and decide how much of an allowance to pay for. Make sure that data will be available to you wherever you roam, too — double check the coverage maps and don’t be afraid to take it for a test drive if you’re able to trial the device, first.

You’ll also want to consider battery life—are you planning to use the hotspot periodically or for eight hours a day? Think about whether you need 4G or 5G coverage, as well as security features, to ensure you will have a fast and safe internet connection every time.

Look for a hotspot device that’s easy enough to use and durable for wherever you bring it. You might be able to use one provided by the carrier or ISP, but you can usually bring your own device if you have a preference.

Find Fast and Reliable Internet Today

For fast, reliable internet wherever you go, a hotspot gives you modern connectivity and flexibility. It’s a great way to get fast speeds on your phone, laptop, or tablet when you’re on the go.

For when you’re at home, though, Kinetic Fiber provides you with Wi-Fi that’s fast, reliable, and free from data caps or contracts. We give you the freedom and power to stream, browse, work, and play how you want.

See if Kinetic is available in your neighborhood today.

What is a hotspot? FAQs

A hotspot is a way to connect to the internet when you’re not home — either as a mobile hotspot or public hotspot. It consists of a device that broadcasts cellular data or a wired internet connection to other nearby devices.

How do hotspots work and how can I connect to them?

Hotspots work by receiving an internet connection from cellular, fiber, cable, or other means and then transmitting it out as Wi-Fi signal to nearby devices. You can connect by pulling up your device’s Wi-Fi manager, finding the hotspot’s network, entering the password, and then testing the connection.

What are the benefits of using a hotspot?

Hotspots bring internet to nearly any destination. As long as there’s cell service, mobile hotspots can take you online in the most remote locations. Plus, they can be secured with passwords so only the right people can log on.

Can a hotspot be used on a cell phone?

Yes, a smartphone can become a hotspot and share its own mobile data with nearby devices.

Are mobile hotspots the same as regular hotspots?

Hotspot is a general term for an area or device that provides close-range internet connectivity. Mobile hotspots are untethered and use 4G/5G cell networks, but they can have spotty service if you’re on the edges of the coverage map.

Wired hotspots, such as at a train station or park, can have higher speeds if linked into a fiber network. However, congestion on these networks, as well as security concerns, often lead busy digital natives to stick with the mobile hotspot for convenience, safety, and performance.